SOL-“Watch Out for Short-Squeeze”

1-Day Analysis:

Big Picture: Solana’s corrective recovery began with the formation of an inverted hammer on September 12th. Since then, it has had four bullish candle closes and is on track to have its fifth positive candle close. The momentum is beginning to shape up, as confirmed by the Relative Strength Index (RSI). However, for the upside to have significant legs, it must first break over the resistance level of 20.30.

On the Upside price has flipped the level of 18.65 once more and is now challenging the next resistance zone of 19.10 to 19.15. Price is having some notable success against this resistance zone for the session, in contrast to the prior session. If the price remains in this range, the upside is projected to extend further into the levels of 19.65, followed by 20.30. Level 20.30 remains crucial since strength over it unlocks Solana next towards 21.10 and 23.15.

On the Downside Solana has had a strong move upward after making a hold over 18.50 to 18.60 levels. Furthermore, the 4-hourly EMA-50 is present slightly above this support level, adding to the supports. If Solana maintains this level of support, price will be able to sustain its momentum. While a breach of this support zone would halt the pace again and may result in additional support re-tests before any further tries higher.